Kirby McInerney & Squire, LLP Retained to Commence Class Action Lawsuit Against AremisSoft Corporation
NEW YORK--(BUSINESS WIRE)--May 30, 2001--Please take notice that Kirby McInerney & Squire has been retained to commence a class action lawsuit on behalf of all purchasers of AremisSoft Corporation (Nasdaq: AREM - news) securities between December 17, 1999 through May 14, 2001 (the ``Class Period'').
The complaint will charge AremisSoft, as well as its current and former Chief Executive Officers, with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. These violations are alleged to arise from material misrepresentations, made by the defendants during the Class Period, regarding the ArtemisSoft's business and operations, particularly with respect to a 1999 contract entered into with the National Health Insurance Fund of Bulgaria.
Specifically, the complaint will allege that such misrepresentations began on December 17, 1999, when AremisSoft issued a press release announcing that it had been awarded a contract - valued at $37.5 million - by the National Health Insurance Fund of Bulgaria to automate the national healthcare system of Bulgaria. Throughout the Class Period, defendants highlighted the value of this contract in AremisSoft's press releases and public filings. On May 17, 2001, however, the New York Times reported that officials of the World Bank and Bulgaria indicated that the value of their contract with AremisSoft was not $37.5 million but, in fact, less than $4 million.
On May 18, 2001, AremisSoft issued a press release concerning the Bulgarian contract, and in effect admitted that its prior representations concerning the contract had been misleading as: (i) the Company had not disclosed that AremisSoft had only won a small portion of the overall contract to automate the Bulgarian national healthcare system, and (ii) the Company would have to engage in competitive bidding for the remainder of the contract. The complaint will allege that the misrepresentations concerning the value of the contract had the effect of artificially inflating the price of AremisSoft securities during the Class Period. The complaint will allege, furthermore, that the current and former Chief Executive Officers of AremisSoft took advantage of this artificial price inflation by creating blind trusts naming their families as beneficiaries, transferring 4.8 million shares as well as options for 5.8 million shares into them, and selling all such shares and exercising and selling all such options.
When trading in AremisSoft stock reopened on May 18, 2001, the price declined from $13.28 per share to $11.98 per share - a decline of 9.8% and a 35% decline from $18.47 per share, the price at which AremisSoft common stock was trading prior to when rumors concerning the value of the Bulgarian contract began to filter through the market. The lawsuit will seek to recover losses suffered by individual and institutional investors who purchased AremisSoft securities during the Class Period, excluding the defendants and their affiliates.
Kirby McInerney & Squire, LLP specializes in complex litigation, including securities class actions and has repeatedly demonstrated its expertise in this field. The firm has been recognized by various courts which have appointed the firm to major positions in consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and its achievements and quality of service have been chronicled in published decisions. More information about the firm can be obtained by visiting the firm website at www.kmslaw.com.
Class actions have been filed on behalf of the class described above. Investors who purchased AremisSoft securities during the class period may, no later than July 23, 2001 move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements, as set out in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. 78u-4). A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Class members need not, however, seek appointment as lead plaintiff in order to share in any recovery resulting from this litigation.
If you wish to discuss the claims described above, or have any questions concerning this notice or your rights, please contact:
Ira Press, Esq. Orsi Szotyory-Grove, Paralegal KIRBY McINERNEY & SQUIRE, LLP 830 Third Avenue, 10th Floor New York, New York 10022 Telephone: (212) 317-2300 or Toll Free (888) 529-4787 E-Mail: orsisg@kmslaw.com Website: www.kmslaw.com
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Contact:
KIRBY McINERNEY & SQUIRE, LLP, New York
Ira Press, Esq.
Orsi Szotyory-Grove, Paralegal
212/317-2300 or Toll Free 888/529-4787
E-Mail: orsisg@kmslaw.com
Website: www.kmslaw.com |
